Keystroke Point of Sale Help


Configuration Manager - Menus - Tables - Tax - Tables - Tax Formulas - When Tax Rates Change

When a taxing authority announces an upcoming rate change, use the Date Range Setting on the Tax Formula screen to pre-configure the rate change so it becomes effective automatically on the appropriate day.

For example, let's say on January 1, 2019 the State sales tax rate is scheduled to increase from 8% to 9%. In the State District, add a new Formula for the appropriate Tax Code (probably T for Taxable items). Leave all settings the same as the current formula using the same Tax Code, except for the Amount (which should be 9% in this example) and the new Start Date (which should be changed to January 1, 2019 (i.e., 01/01/19 in this example). Then edit the current Tax Formula (the one with the 8% tax rate), and change the End Date to December 31, 2018 (i.e. 12/31/18 in this example).

Follow these Step-by-Step Instructions to prepare for a tax rate change.

- From the Main Menu, select Configuration Manager - Tables Menu.

- From the Tables Menu, select Tax - Districts.

- Select the State Tax District and press [Enter] or [F3] to edit. Note: Some businesses choose not to use separate Districts for State and Local tax rates. In this case, select the combined State/Local district.

- Tab to the Tax Formulas box and press [Ins] to add a new formula.

- Verify the Tax Code is T for Taxable, and enter the new tax rate amount (9% in this example).

- Tab to the Start Date field and enter the appropriate starting date (01/01/19 in this example). Leave the default end date, and press [F10] to save the new tax formula.

- Navigate to the old Tax Formula (8% in this example), and press [Enter] or [F3] to edit.

- Change the End Date to the last day the old tax rate is effective, usually the day before the new tax rate takes effect (12/31/18 in this example). Press [F10] to save the changes.

- Press [F10] again to save the entire Tax District. The new tax rate will take effect automatically on the appropriate day.

The rate change may be tested by entering a "test" sale in Sales Manager.

- Add a taxable item to a new Sales Invoice.

- Then navigate to the Transaction Menu and choose Number/Date.

- Change the Transaction Number to "1" and enter the date on which the tax rate change is due to take effect (i.e., 01/01/19 in this example). Press [Ok] or [F10]. When the "WARNING: This date is in the future. Proceed with date as entered?" message appears, press [Ok]. When the "Change number counter for future sales?" message appears, select [No].

- Once the new tax rate has been verified (displayed in the Tax field in the lower right-hand corner of the Invoice Item Entry screen), clear the transaction by selecting Clear from the Transaction Menu.

See:

Tax Tables - General Information

Configuration Manager Contents

Keystroke Help Table Of Contents